Why they need to be spun off into a new entity ?The new entity will be India’s largest Value Retailer and it can entail the Pantaloon group to command a premium while raising more money for expansion. The goal here is to make this entity the supply chain back end for all the Future Group Formats. What is in for current shareholders of PRIL ? PRIL will become the holding company in proportion to its existing stake, which is 100% in both Big + Food Bazaar.

It is reported in the press that French retailer Carrefour may take a stake in Future Value Retail which will bring in the required cash as well as expertise to build and run economies of scale supply chain so essential to make a difference in the Indian retail scape. However, we feel it is Kishore Biyani’s decade of experience with Indian vendors and suppliers that will equally help thcompany since Western models cannot be replicated directly in India.